What is the biggest issue facing businesses in the next couple of years?
According to Bernard Salt, demographer, the biggest issue facing business since the onset of the pandemic is access to skills.
In my opinion, there are 2 issues combined in 1 here.
First is access to skills and second is retention of skills.
Covid 19, the retirement of the boomers and the decrease in immigration as well as the great resignation in developed economies have led to such a severe shortage of staff for certain jobs as well as a huge inflationary pressure on wages that businesses are being crippled.
So many small businesses are simply closing down, let alone grow or thrive.
So many business owners are resorting to having to work hard IN the business as opposed to working ON it.
What are the solutions? Enter FIZO…
There is the FIFO worker but now there is a new bread, the FIZO worker. FIZO stands for FLY IN ZOOM OUT.
Covid has shown us that work can be done remotely. In fact, I posit that if work can be done remotely, it can be outsourced.
If it can be outsourced, businesses can use arbitrage to create a win – win situation for businesses as well as the FIZO worker.
Maxstaff.co was set up during covid as I was struggling to access staff for some admin functions, sales, IT as well a Finance function in my business. I had a lot of friends entrepreneurs as well as business leaders facing the same challenge.
I figured out that by arbitraging, I could have access to staff in developing economies who were chasing FIZO work at a higher salary that traditional jobs in their countries and at the same time solve the staffing issues locally.
It worked!!
However, it needed a strategy and a good management system to succeed. Below are the 10 top strategies I would recommend to ensure you outsource your processes successfully.
1. Define your outsourcing goals
You need to be clear about the reason why you want to outsource, and what you’re aiming to gain through it. Outline your vision, goals, and objectives, and how you’d want to achieve each of them. Don’t shy away from getting into the nitty-gritty details!
Maxstaff.co will help you understand the challenges you face, your goals as well as how we can achieve these goals together.
2. Specify your needs
Evaluate the needs of your business, and be very specific. Which of your business functions would benefit most from outsourcing? How long do you need the outsourced services? How many people do you need to do it, and what are their levels of expertise? Ask yourself questions like these to specify your needs, so you can communicate them clearly with potential service providers.
3. Pinpoint the right outsourcing model
Outsourcing comes in many forms. In terms of location, you can choose between onshore, nearshore, and offshore outsourcing. There are also different services, such as staff leasing and managed services. Research extensively to read about outsourcing and pinpoint which model works best for you.
4. Communicate with your service provider
If you need help in deciding on an outsourcing model, you can always reach out to outsourcing service providers. And even if you’re already doing business with them, clear communication with your outsourcing partner is extremely vital to your successful outsourcing.
5. Document your processes
This is extremely important. Document your company’s process for the function that you’re planning to outsource. Provide the details to your outsourced team, so they can understand how you prefer to get the work done. You can use diagrams, flowcharts, slide shows, or videos to illustrate each step. Maxstaff.co will help you do this.
6. Communicate within your organization
Outsourcing affects your entire organization, so you need to communicate your strategy with them, as well. Tell them why you’re choosing to outsource and how it will benefit the business. This is especially crucial when there are employees who might be affected by the decision. You might also gain valuable insight from your employees about your outsourcing strategy.
7. Be clear about deliverables
Outsourcing providers need clear deliverables to meet your expectations. Give as much information as you can about what you need them to deliver, how you want it done, and your preferred timeline. Both sides should always stay updated on any changes or progress.
8. You don’t have to start big
Starting big right away is a common pitfall for beginners — not to mention a risky move, as well. Instead, you can start small by outsourcing one project or a small team first. Learn how you can improve your approach to outsourcing before moving on to outsource bigger operations.
9. Actively monitor progress
You need to establish clear key performance indicators (KPIs) for your outsourced team. These KPIs allow you to monitor their progress closely and identify ways to correct their performance if the KPIs aren’t met. If the KPIs are met, you can use the information to strengthen current processes. Maxstaff.co will help monitor performance of your staff through the outsourcing journey.
10. Be strict about quality assurance and confidentiality
In outsourcing, you need to pay great attention to quality assurance and data security. Take time to have an in-depth discussion about this with any potential service provider. Both of you should work together to set strict rules about quality control, data confidentiality, and intellectual property. Make sure that your outsourced team signs NDAs and exclusive work ownership agreements.
Lastly, Choose your service provider wisely
Much of your outsourcing success relies on having a good service provider. Aside from meeting your budget, they should have ample experience and expertise, and you have to be able to communicate with each other efficiently, as well.
